International Breweries Rises to 3-Month High on Dividend Bets
International Breweries Plc (INTBREW) rose to its highest level in three months as investors’ bet the Nigerian brewer will pay a dividend for this year.
The company jumped 10 percent to 15.62 naira at close in Lagos, Nigeria’s commercial capital, the highest level since Sept. 19. The number of shares traded was 58 percent of the stock’s three-month moving average, according to data compiled by Bloomberg.
“Investors expect a dividend of between 60 kobo and 70 kobo per share,” Raheem Mohammed, the chief operating officer of Kundila Finance Ltd., said by phone from Lagos today.
Profit for the nine months through September rose to 1.29 billion naira ($8.2 million) from 635.3 million naira a year earlier, the company said on Nov. 2. Revenue rose to 9.1 billion naira from 6.9 billion naira.
“The last quarter is always the best for breweries because of higher consumption,” Mohammed said.
International Breweries raised 7 billion naira in 2011 through a rights issue to refinance its debt and buy capital equipment.
The company has not paid dividends “for a long time, and now that its performance has improved, investors expect it must pay a dividend,” Mohammed said.
The shares have surged 174 percent this year, compared with a 33.3 percent rise in the Nigerian Stock Exchange All-Share Index.
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